Starting a business involves several key steps. Here's a guide to help you through the process:
- Develop your business idea Starting a business begins with an idea. Consider what unique product, service, or solution you can offer
. Many entrepreneurs identify a niche, which is a specialized market segment that may be underserved or overlooked by other businesses
. Alternatively, you could use the knowledge, skills, or crafts you already possess to find a business idea
- Conduct market research Market research will tell you if there’s an opportunity to turn your idea into a successful business
. It’s a way to gather information about potential customers and businesses already operating in your area
. Use that information to find a competitive advantage for your business
- Create a business plan This document serves as a roadmap for structuring, running, and growing your business
. It’s a tool you’ll use to convince others that investing in or working with your business is a wise decision
. Your business plan includes everything from your mission statement, which defines your business’s purpose and values, to your financial projections, which outline your expected income, expenses, and profitability
- Fund your business Your business plan will help you figure out how much money you’ll need to start your business
. If you don’t have that amount on hand, you’ll need to either raise or borrow the capital
. Fortunately, there are more ways than ever to find the capital you need
. To start a business with no money, consider low-investment options like a dropshipping store or a print-on-demand business
- Choose a business structure The legal structure you choose for your business will impact your business registration requirements, how much you pay in taxes, and your personal liability
. Familiarize yourself with options like sole proprietorships, partnerships, LLCs, and corporations
. Each has different legal and tax implications
- Select a business name You’ll want one that reflects your brand and captures your spirit
. You’ll also want to make sure your business name isn’t already being used by someone else
- Register your business Once you’ve picked the perfect business name, it’s time to make it legal and protect your brand
. If you’re doing business under a name different than your own, you’ll need to register with the federal government, and maybe your state government, too
- Get federal and state tax IDs You’ll use your employer identification number (EIN) for important steps to start and grow your business, like opening a bank account and paying taxes
. It’s like a social security number for your business
- Apply for licenses and permits The licenses and permits you need for your business will vary by industry, state, location, and other factors
- Open a business bank account A small business checking account can help you handle legal, tax, and day-to-day issues
- Develop a brand Develop a brand strategy and identity (choose a name, design a logo, etc.)
- Launch your business website Build and launch your website
- Market your business Market your business (set up social media, create a marketing plan, etc.)
